For what reason might the United States government raise taxes instead of borrowing money to pay for a new government service?

To decrease public support for the new program
To prevent having to make changes to the federal budget
To show that people support taxation more than borrowing
To avoid paying interest on savings bonds

Question

For what reason might the United States government raise taxes instead of borrowing money to pay for a new government service?

To decrease public support for the new program
 To prevent having to make changes to the federal budget
 To show that people support taxation more than borrowing
 To avoid paying interest on savings bonds

Gucchi · Answer

Am I right with D?

Gucchi · Answer

@az

josiahcantcount · Answer

@gucchi wrote:

Am I right with D?

yes you are right with D

Isry · Answer

What is a savings bond?

Gucchi · Answer

U.S. Savings bonds are commonly given as birthday presents or other gifts for children.

Gucchi · Answer

its like when you save up money for a college

Isry · Answer

So why would the US be paying on Savings Bonds?

Gucchi · Answer

@ihelpuuhelpme pls help im confused

ghostmasterTy · Answer

"To avoid paying interest on savings bonds". Taxes are the main source of income for the goverment in an economy. If the level of income raised through taxes is not enough to finance goverment spending (that is used to provide public services, for example), the goverment needs to borrow funds.

SaltTheLoser · Answer

Your answer would be b

SaltTheLoser · Answer

If the government borrowed money than that would mean they would have to repay that but if they increased taxes they could pay it off without owing the money back

IhelpUuHELPme · Answer

Yes, you are correct.

The government wouldn't borrow because of the fact that when borrowing, there might be agreements, interests, or as answer choice D says, saving bonds.

It wouldn't be A because public support doesn't really have anything to do with the decision of the government. Which also eliminates answer choice C.

Wouldn't be B because raising taxes wouldn't make changes to the federal budget.

Correct me if I'm wrong -

Isry · Answer

It's not D. SK. If they raised taxes they don't have to take money out of the budget. If they have to take money out of the budget they have to make changes to the budget.

Gucchi · Answer

So B?

IhelpUuHELPme · Answer

But how would it be any of the other answer choices?

It wouldn't be A or C, ik that for sure.

Would that mean that when borrowing money, the government would have to make changes to the federal budget?

Gucchi · Answer

@salttheloser wrote:

Your answer would be b

?

SaltTheLoser · Answer

Yes, it's b dude, we explained why it's B. You just need to think it through.

Gucchi · Answer

Alright then